Incremental procedure

Element infrastruktury przesyłowej

COMMISSION REGULATION (EU) 2017/459 (CAM NC) requires EU Transmission System Operators (TSOs) to undertake cooperation in processes to assess market demand for incremental capacity, and in technical analyses concerning incremental capacity projects for their respective interconnection points, at least in each odd-numbered year immediately after the start of the annual product auction.        

“Incremental capacity” that may result from an incremental procedure means:
  • increase of technical capacity at existing interconnection points;
  • creation of a new interconnection point or new interconnection points;
  • making physical reverse flows available on interconnections which were not previously offered.

Incremental procedure 2023-2025

GAZ-SYSTEM completed the incremental capacity procedure at the Polish-Ukrainian GCP

On 1 July 2024, the Transmission System Operators of Poland (GAZ-SYSTEM) and Ukraine (LLC „Gas Transmission System Operator of Ukraine”) conducted the bundled incremental capacity auction on both sides of the interconnection point at the border of Polish and Ukrainian markets at  GCP GAZ-SYSTEM/UA TSO.

In the annual auction, no amount of abovementioned incremental capacity was booked by any market participant, therefore, the outcome of the economic test was negative on both sides of the interconnection point at Polish-Ukrainian border.

According to Article 22(3) of CAM NC, in case no offer level results in a positive outcome of the economic test, the specific incremental capacity process shall be terminated.

The procedure was carried out in accordance with the Commission Regulation of 16 March 2017 (EU) 2017/459 establishing the Network Code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013 (CAM NC)  and on the basis of the applications for the incremental capacity project approval by decisions of the respective national regulatory authorities (decision of the President of the Polish Energy Regulatory Office No. DRR.WRG.745.1.2024.MJS of 26 April 2024 for Poland, and decision of the Ukrainian Energy Regulatory Office № 829 of 30 April 2024 for Ukraine).

Decision of the President of the Energy Regulatory Office (ERO) approving the incremental capacity project proposal for the border between Poland’s and Ukraine’s bidding zones

The decision constitutes the basis for an incremental capacity auction at the GAZ-SYSTEM/UA TSO GCP interconnection point. The auction will be held on 1 July 2024 on the GSA Platform.

On 26 April 2024, the President of the Energy Regulatory Office (President of ERO) issued decision Ref. No. DRR.WRG.745.1.2024.MJS concluding the administrative proceedings related to GAZ-SYSTEM’s application for the approval of the incremental capacity project for the border between Poland’s and Ukraine’s bidding zones.

The President of ERO decided that the project proposal submitted by GAZ-SYSTEM met all the substantive requirements under Article 28(1) of CAM NC for the approval of the incremental capacity.

The auction will be held on 1 July 2024 on the GSA Platform. Registration with both network operators on the GSA Platform and acceptance of General Terms and Conditions for the incremental project of both TSOs is required to participate in the auction.

The binding offer level of 3,095,890 kWh/h will be offered by GAZ-SYSTEM and Gas Transmission System Operator of Ukraine (GTSOU) to the market in a yearly capacity auction from the gas year 2030/2031 over the period of 15 years.

For the incremental capacity in direction from Poland to Ukraine offered by GAZ-SYSTEM, the President of ERO approved the reference price at the level of 3.214 PLN/(MWh/h)/h, i.e. at the level of the fixed fee for the provision of gas transmission services at the exit point, in force from 1 January 2024 to 1 January 2025, in accordance with “The Tariff No. 17 for Gaseous Fuels Transmission - rev. No. 1”.

The project that had been submitted for approval was the response to the non-binding market demand indications for incremental capacity at the GCP GAZ-SYSTEM/UA TSO interconnection point received by GAZ-SYSTEM and GTSOU LLC during the 2023 non-binding market demand assessment for incremental capacity between transmission systems of Poland and Ukraine conducted according to Regulation (EU) 2017/459 (CAM NC). 

Following the operators' technical and economic analyses as well as market consultations of the draft project proposal, on 8 January 2024, pursuant to Article 28(1) of CAM NC, GAZ-SYSTEM submitted to the President of ERO the application for the approval of the incremental capacity project proposal for the border between Poland’s and Ukraine’s bidding zones. 

In order to obtain coordinated decisions from the National Regulatory Authorities approving the joint incremental capacity project proposal, GTSOU submitted an equivalent application to the National Energy and Utilities Regulatory Commission (NEURC). 

Pertinent documents for download: 

GAZ-SYSTEM and „GAS TRANSMISSION SYSTEM OPERATOR OF UKRAINE” are launching public consultations on the incremental capacity project at the border between Poland and Ukraine

In accordance with Commission Regulation (EU) 2017/459 of 16 March 2017 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013 (CAM NC), GAZ-SYSTEM in cooperation with LLC „Gas Transmission System Operator of Ukraine” launches public consultations for incremental capacity project at the state border between Poland and Ukraine.

The incremental capacity project proposal was prepared by the TSOs  in response to non-binding demand indications received from the market during the Market Demand Assessment process conducted from July 3 until August 28, 2023.

The document under consultation includes: a description of the incremental capacity project  including the proposed technical solution, estimated costs, preliminary schedule, offer level for bundled capacity product and terms and conditions of participation in and access to incremental capacity during the yearly capacity auction.

Interested system users are requested to provide comments to the draft project proposal for the incremental capacity project on the border between Poland and Ukraine and the accompanying general terms and conditions for participation the incremental capacity auction, to the e-mail address: incremental@gaz-system.pl until 30 November 2023.

Download:

 

More information:

GAZ-SYSTEM publishes joint reports on Market Demand Assessment for incremental capacity

Pursuant to Commission Regulation (EU) 2017/459 of 16 March 2017 (CAM NC) establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013, GAZ-SYSTEM, together with the operators of the adjacent transmission systems, assessed market demand for incremental capacity for the fourth time.

Based on the received non-binding demand indications, the operators prepared joint market demand assessment reports which estimate potential demand for incremental capacity in the respective entry-exit systems and specify whether an incremental capacity project should be initiated.

The conclusions from the incremental capacity demand assessment are presented in the following reports:

  1. Poland-Germany (Trading Hub Europe) interconnection:

Demand assessment report for incremental capacity between Polish NTS and Trading Hub Europe.

  1. Poland TGPS-Germany (Trading Hub Europe) interconnection:

Demand assessment report for incremental capacity between Polish section of Yamal-Europe TGPS and Trading Hub Europe.

  1. Poland-Denmark interconnection:

Demand assessment report for incremental capacity between the Polish gas transmission system and the Danish gas transmission system.

  1. Poland-Czech Republic interconnection:

Demand assessment report for incremental capacity between the Polish gas transmission system and the Czech gas transmission system.

  1. Poland-Lithuania interconnection:

Demand assessment report for incremental capacity between the Polish gas transmission system and the Lithuanian gas transmission system.

  1. Poland-Slovakia interconnection:

Demand assessment report for incremental capacity between the Polish gas transmission system and the Slovak gas transmission system.

  1. Poland-Ukraine interconnection:

Demand assessment report for incremental capacity between the Polish gas transmission system and the Ukrainian gas transmission system.

The Market Demand Assessment reports for incremental capacity are also available on the ENTSOG website.

GAZ-SYSTEM starts the non-binding assessment of market demand for incremental capacity

The non-binding assessment of market demand is carried out under the Regulation (EU) 2017/459 of 16 March 2017 establishing a network code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013 (CAM NC).

With the view of harmonizing the process of additional and new incremental capacity development in the European Union, under the CAM NC 2017 amendment, the provisions of the incremental capacity process were introduced, allowing market participants to declare their demand for incremental capacity in a non-binding, standardised procedure.

GAZ-SYSTEM has launched the fourth non-binding assessment of market demand for incremental capacity between Polish and neighbouring transmission systems. The non-binding assessment of market demand for incremental capacity starts on 3 July 2023 and will last 8 weeks, i.e. until 28 August 2023. The procedure will be conducted by means of the GSA Platform, in accordance with the applicable GSA Platform Rules.Submission of non-binding declarations to GAZ-SYSTEM is free of charge.

Based on the non-binding declarations received under this year’s market demand assessment procedure for incremental capacity, GAZ-SYSTEM and transmission system operators in neighbouring countries will develop common market demand assessment reports, each covering all interconnection points within respective entry-exit systems. The reports will estimate the potential demand for incremental capacity on each entry-exit system, and determine whether it requires the initiation of an incremental capacity project.

Pursuant to the provisions of CAM NC, market demand assessment reports will be published no later than 16 weeks after the start of the procedure, i.e. by 23 October 2023 at the latest, on the websites of all transmission system operators concerned.

All the interested transmission system users are requested to submit their non-binding declarations of demand for incremental capacity through the GSA Platform, until 28 August 2023.

Any questions about the assessment of market demand for incremental capacity shall be sent to the e-mail address: incremental@gaz-system.pl.

Reference documents for download:

Incremental procedure 2021-2023

Information on the completion of the incremental capacity procedure at the Polish-Ukrainian border, initiated in (INCREMENTAL 2021-2023)

The transmission system operators of Poland (GAZ-SYSTEM) and Ukraine (LLC „Gas Transmission System Operator of Ukraine”) inform that in the annual auction for incremental capacity on both sides of an interconnection point at the border of Polish and Ukrainian markets which took place on 3 July 2023, both TSOs proposed the common offer level of incremental capacity for bundled capacity at IP GCP GAZ-SYSTEM/UA TSO.

In the annual auction, no amount of abovementioned incremental capacity was booked by any market participant, therefore, the outcome of the economic test was negative on both sides of the interconnection point at Polish-Ukrainian border.

According to Article 22(3) of CAM NC, in case no offer level results in a positive outcome of the economic test, the specific incremental capacity process shall be terminated.

The procedure was carried out in accordance with the Commission Regulation of 16 March 2017  (EU) 2017/459 establishing the Network Code on capacity allocation mechanisms in gas transmission systems and repealing Regulation (EU) No 984/2013 (CAM NC)  and on the basis of the applications for the incremental capacity project approval by decisions of the respective national regulatory authorities (decision of the President of the Polish Energy Regulatory Office No. DRR.WRG.745.6.2022.MJS of 28 April 2023 for Poland, and decision of the Ukrainian Energy Regulatory Office № 799 of 28 April 2023 for Ukraine).
 

Decision of the President of the Energy Regulatory Office (ERO) approving the incremental capacity project proposal for the border between Poland and Ukraine

The decision constitutes the basis for an incremental capacity auction at the GAZ-SYSTEM/UA TSO GCP interconnection point. The auction will be held on 3 July 2023 on the GSA Platform.

On 28 April 2023, the President of the Energy Regulatory Office (President of ERO) issued decision DRR.WRG.745.6.2022.MJS thus concluding the administrative proceedings related to GAZ-SYSTEM’s application for the approval of the incremental capacity project for the border between Poland and Ukraine.

The project that had been submitted for approval was the response to the non-binding market demand indications for incremental capacity at the GCP GAZ-SYSTEM/UA TSO interconnection point received by GAZ-SYSTEM and LLC „Gas Transmission System Operator of Ukraine” (GTSOU)during the 2021 market demand assessment for incremental capacity between transmission systems of Poland and Ukraine conducted according to Regulation (EU) 2017/459 (CAM NC).

Following the operators' technical and economic analyses as well as market consultations of the draft project proposal, on 14 November 2022, pursuant to Article 28(1) of CAM NC, GAZ-SYSTEM submitted to the President of ERO the application for the approval of the incremental capacity project proposal for the border between Poland and Ukraine.

In order to obtain coordinated decisions from the national energy authorities approving the incremental capacity project proposal for the border between Poland and Ukraine, GTSOU submitted an equivalent application to the National Energy and Utilities Regulatory Commission (NEURC).

The President of ERO decided that the project proposal submitted by GAZ-SYSTEM met all the substantive requirements under Article 28(1) of Regulation (EU) 2017/459 (NC CAM) for the approval of the incremental capacity project for the border between Poland and Ukraine.

The coordinated decisions obtained from the regulators constitute the basis for holding on the GSA Platform an incremental capacity auction on 3 July 2023. Registration with both network operators is required to participate in the auction on the GSA Platform.

Pertinent documents for download:

In the absence of the possibility to submit a joint application to the Energy Regulatory Offices of the Republic of Poland and the Czech Republic, the President of the Polish Energy Regulatory Office had no grounds for issuing a coordinated decision on the approval of the incremental capacity project for the border between Poland and the Czech Republic in accordance with Chapter V of Regulation 2017/459 and thus the 2021-2023 incremental capacity process for the border between Poland and the Czech Republic should be considered finished.

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The next steps in the process of obtaining incremental capacity according to CAM NC

The next steps in the process of obtaining incremental capacity according to CAM NC:

GAZ-SYSTEM, jointly with operators of adjacent transmission systems within the European Union, assessed market demand for incremental capacity for the third time.

GAZ-SYSTEM, jointly with operators of adjacent transmission systems within the European Union, assessed market demand for incremental capacity for the third time.

The conclusions from the incremental capacity demand assessment are as follows: